GST/HST rebate for employees and partners

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GST/HST rebate for employees and partners

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Overview
How the GST/HST rebate affects your income tax
Rebate eligibility
Expenses that are eligible for the rebate
Information you need to fill out Form GST370
How to fill out Form GST370
When to file and where to send your rebate application
Overpayment of the rebate
Documents to include with the rebate application and to keep for your records

Overview

The employee and partner GST/HST rebate allows certain employees and partners (who are individuals) to recover the GST/HST they have paid on eligible expenses, such as office supplies, travel, meals, and entertainment.

Employees and partners can apply for the rebate using Form GST370, Employee and Partner GST/HST Rebate Application.

How the GST/HST rebate affects your income tax

When you receive the GST/HST rebate for your expenses, you have to include it in your income for the year you received it. Use the following sections to find out how the GST/HST rebate affects your income tax depending on your situation.

Employees

Employee whose employer is a GST/HST registrant

Report the rebate amount on line 10400 of your income tax and benefit return. For example, if in 2023 you received the GST/HST rebate you claimed for the 2022 tax year, you have to include it on line 10400 of your 2023 income tax and benefit return.

If any part of the GST/HST rebate is for a vehicle, a musical instrument, or an aircraft you bought, the rebate will affect your claim for capital cost allowance (CCA) in the year you received it. If this applies to you, reduce the undepreciated capital cost of your vehicle, musical instrument, or aircraft by the amount of the rebate at the beginning of the year in which you receive the rebate. Do not include that part of the rebate on line 10400 of your income tax and benefit return.

Partners

Partner of a GST/HST registered partnership

Report the rebate amount you receive that relates to eligible expenses, other than capital cost allowance (CCA), on line 9974 of your applicable business statement.

If any part of the GST/HST rebate is for a vehicle, a musical instrument, or an aircraft you bought, the rebate will affect your claim for CCA in the year you receive it. If this applies to you, reduce the undepreciated capital cost of your vehicle, musical instrument, or aircraft by the amount of the rebate at the beginning of the year in which you receive the rebate. Do not include that part of the rebate on line 9974 of your applicable business statement.

For more information on calculating the eligible portion of CCA and the rebate, see the examples at the end of How to fill out Form GST370.

Rebate eligibility

Use the following sections to determine if you are eligible for the GST/HST rebate depending on your situation.

Employees

Employee whose employer is a GST/HST registrant

As an employee, you may be eligible for the GST/HST rebate if both of the following apply:

  • You paid the GST/HST on certain employment-related expenses and deducted those expenses on your income tax and benefit return
  • Your employer is a GST/HST registrant

You are not eligible for the GST/HST rebate if one of the following applies:

Partners

Partner of a GST/HST registered partnership

As an individual who is a member of a partnership, you may be eligible for the GST/HST rebate if all of the following apply:

  • The partnership is a GST/HST registrant
  • You personally paid GST/HST on expenses that:
    • you did not incur on the account of the partnership
    • you deducted from your share of the partnership income on your income tax and benefit return

To be eligible for the rebate, you must have paid the GST/HST on the expense or acquisition and the partnership must use it to make taxable supplies.

As a partner, you can only claim a rebate to the extent that the partnership could have claimed an input tax credit (ITC) if it had incurred the expense directly. This means that if your partnership cannot claim any ITCs because it provides only exempt supplies (for example, doctors providing exempt medical services), you cannot claim a GST/HST rebate for the expenses you deducted from your share of the partnership income.

The rebate is limited to the amount that would be eligible for an ITC if the partnership had incurred the expenses and paid GST/HST in the last reporting period of its last fiscal year that ended in the calendar year for which you are claiming the rebate.

Expenses that are eligible for the rebate

Use the following sections for common examples of eligible expenses, non-eligible expenses, and the eligible portion of capital cost allowance on motor vehicles, musical instruments, and aircraft for which you may claim the GST/HST rebate.

Eligible expenses

Eligible expenses include:

  • advertising and promotion
  • fuel costs (except for motor vehicles)
  • leasing expenses
  • legal, accounting, and other professional fees
  • lodging
  • maintenance and repairs
  • meals and entertainment (allowable part only)
  • motor vehicle expenses (allowable part only)
  • office expenses
  • parking
  • rent
  • supplies
  • telephone and utilities
  • travel
  • workspace-in-the-home expenses

Non-eligible expenses

Non-eligible expenses include:

  • expenses on which you did not pay the GST/HST, such as:
    • goods and services acquired from non-registrants (for example, small suppliers)
    • most expenses you incurred outside Canada (for example, gasoline, accommodation, meals, and entertainment)
    • certain expenses on which you do not pay GST or HST (goods and services that are subject to the GST/HST, but at a rate of 0%), including basic groceries, prescription drugs, medical devices, most agriculture and fish products, and certain expenses that farmers and fishers incur
    • expenses that are not subject to GST or HST, including most health and dental care services, most educational services, medical underwriting fees, insurance premiums, bonding premiums, mortgage interest, residential rents, interest, motor vehicle licence and registration fees, and salaries
  • expenses you incurred when your employer or your partnership was not a GST/HST registrant
  • expenses that relate to an allowance you received from your employer that is not reported in Part C of Form GST370, Employee and Partner GST/HST Rebate Application (for example, an allowance that was not included in your income as a taxable benefit because it was a reasonable allowance)
  • any personal-use portion of an eligible expense
  • 50% of the GST/HST paid on eligible expenses for food, beverages, and entertainment (for long-haul truck drivers, 20% of the GST/HST paid on these expenses that were incurred during eligible travel periods)
  • an eligible expense or part of an eligible expense, for which you were reimbursed or are entitled to be reimbursed by your employer or your partnership
  • expenses of a partner that relate to the partnership's supplies of exempt goods or services (if you are a member of a partnership that sells exempt goods or services as well as taxable goods or services, subtract the amount of expenses relating to the exempt sales from the total expenses)
    • expenses of a partner that relate to the partnership's supplies of exempt goods or services may be calculated on a percentage basis (for example, by estimating the percentage of the expenses that relate to exempt goods or services) or by specifically identifying those expenses that relate to exempt goods or services supplied by the partnership

Capital cost allowance

The eligible portion of capital cost allowance on motor vehicles, musical instruments, and aircraft for which you may claim the rebate

You can claim a rebate of the GST/HST you paid when you acquired a motor vehicle, a musical instrument, or an aircraft, based on the amount of capital cost allowance (CCA) you deducted on that property for a tax year.

If you are a partner, the GST/HST rebate on the CCA is limited to the extent the partnership uses that property to make taxable supplies.

If you deduct CCA on more than one property of the same class, you have to separate the portion of the CCA for the property that qualifies for the GST/HST rebate from the CCA for the other non-eligible property. If any part of the rebate relates to the CCA deduction for a motor vehicle, a musical instrument, or an aircraft, you have to reduce the undepreciated capital cost of the related property by that part of the rebate.

For more information on calculating the eligible portion of CCA and the rebate, see the examples at the end of How to fill out Form GST370.


Note


Special rules apply if your employer or partnership paid you an allowance for the property.

You may also be eligible for a rebate if you purchased your motor vehicle, musical instrument, or aircraft outside a participating province and brought the property into a participating province. You may have to do an additional calculation in this case. For more information, see Situation 5 – Property and services brought into a participating province.

Information you need to fill out Form GST370

Before filling out Form GST370, you need to calculate the expenses you deducted on your income tax and benefit return. Depending on your situation, you calculated these amounts on specific forms that you filed with your income tax and benefit return. Once you do these calculations, you can then use these amounts to fill out Form GST370.

Calculating expenses before filling out Form GST370
Your situation Applicable form

An employee (whose employer is a GST/HST registrant).

Form T777, Statement of Employment Expenses and/or Form T777S, Statement of Employment Expenses for Working at Home Due to COVID‑19

If applicable, Form TL2, Claim for Meals and Lodging Expenses

An individual who is a member of a partnership that is a GST/HST registrant and you have incurred eligible expenses which included the GST/HST.

Most businesses expenses – Form T2125, Statement of Business or Professional Activities

Rental expenses – Form T776, Statement of Real Estate Rentals

Farming expenses – Form T2042, Statement of Farming Activities

Farming expenses for those participating in the AgriStability and Agrilnvest programs – Form T1163, Statement A – AgriStability and AgriInvest Programs Information and Statement of Farming Activities for Individuals

Fishing expenses – Form T2121, Statement of Fishing Activities

How to fill out Form GST370

You have to fill out Parts A, B, and D of Form GST370. If applicable, an authorized officer of your employer or your partnership has to fill out Part C. You can only file one rebate application for each calendar year.

If you are claiming a GST/HST rebate for both employee and partner expenses, use only one application form and combine your expenses.

Part A – Identification
Part B – Rebate calculation
Part C – Declaration by claimant's employer or partnership
Part D – Certification

Part A – Identification

If you are the claimant, enter your name and social insurance number in the boxes provided. The "Tax year of claim" should be the same year as the income tax and benefit return for which you are claiming the GST/HST rebate. Also enter the name of the employer or partnership (include the trading or operating name, if applicable) and its business number.

Part B – Rebate calculation

Calculate your rebate based on the expenses you deducted on your income tax and benefit return. These expenses include the GST and PST or HST, and tips (if the tips are included in your bill and you paid the GST/HST on them).

You can claim a rebate of 5/105 of the eligible expenses on which you paid the GST. The rebate amounts of the eligible expenses on which you paid the HST are:

  • 13/113 for expenses on which you paid 13% HST
  • 15/115 for expenses on which you paid 15% HST

In certain cases, you may have to do another calculation if you bought property and services in one province and brought them into a participating province. For more information, see Situation 5 – Property and services brought into a participating province.

See the following situations to determine how to calculate your rebate. For your rebate calculation, use only the expenses you deducted on your income tax and benefit return.

Situation 1 – The only expenses you deducted are union, professional, or similar dues

Not all union, professional, or similar dues that you claimed on line 21200 of your income tax and benefit return are subject to the GST/HST. Your receipt for these dues should show whether the GST/HST was charged. If these dues are the only expense you deducted, do not fill out the charts of the form.

Form GST370 - Part B
Your situation How to fill out Part B
You paid the GST. Enter the amount of the expense on lines 1 and 3 of Part B. Include the GST, but subtract any amount you were reimbursed. Multiply the amount on line 3 by 5/105 and enter the result on line 4.
You paid HST.

Enter the amount of the expense in column 3B and/or 3C, of lines 5 and 7 of Part B. Include the HST, but subtract any amount you were reimbursed. Add the amounts from columns 3B and 3C of line 7, and enter the total on line 8. Multiply the amounts from columns 3B and 3C of line 7 by the corresponding tax fraction (13/113 and/or 15/115) and enter the results on lines 9 and 10 respectively. Finally, add the amounts from lines 9 and 10, and enter the result on line 11.

Note


Columns 3B and 3C represent the HST rates for the participating provinces applicable to your situation.

Add lines 4 and 11, and enter the result on line 14. The amount on line 14 is your total rebate claim. Enter this amount on line 45700 of your income tax and benefit return. Remember to fill out Part D.

Situation 2 – You only deducted expenses on which GST applies on your income tax and benefit return

Before filling out Part B, fill out Chart 1 and Chart 2 (if applicable) on pages 4 and 5 of the form to determine your total expenses that are eligible for the GST rebate.

Enter in column 1A of Chart 1 the employment expenses you deducted on your income tax and benefit return. You calculated these amounts on the following forms or other documents that you filed with your income tax and benefit return:

In addition, if you claimed union, professional, or similar dues on line 21200 of your income tax and benefit return and you paid the GST on these amounts, enter these amounts in column 1A of Chart 1, minus any amount you were reimbursed. Your receipt for these dues should show whether the GST was charged.

Do not enter any amount in the black areas of Chart 1, since these expenses are not eligible for the rebate.

Enter in column 2A of Chart 1 the amount of any expenses you included in column 1A that is not eligible for the rebate. For each expense, subtract the amount in column 2A from the amount in column 1A. Enter the result in column 3A. Total the expenses in column 3A, and enter the result in the "Total eligible expenses" box of column 3A.

If you deducted CCA for a motor vehicle, a musical instrument, or an aircraft on which you paid the GST, enter the total amount of this CCA in column 1A of Chart 2. Subtract any non-eligible CCA in column 2A from your total CCA in column 1A. Enter the result in column 3A.

Copy the "Total eligible expenses" amount from column 3A of Chart 1 and column 3A of Chart 2 to lines 1 and 2 respectively of Part B on page 1 of the form. Add line 1 and line 2 in Part B, and enter the result on line 3. Multiply line 3 by 5/105, and enter the result on line 4.

If situation 5 does not apply to you, copy the amount from line 4 to line 14. This is your total rebate claim. Enter this amount on line 45700 of your income tax and benefit return. Remember to fill out Part D.

Situation 3 – You only deducted expenses on which HST applies on your income tax and benefit return

Before filling out Part B, fill out Chart 1 and Chart 2 (if applicable) on page 4 and 5 of the form to determine your total expenses that are eligible for the HST rebate.

Enter in column 1B and/or 1C of Chart 1 (depending on the HST rates applicable to you) the employment expenses you deducted on your income tax and benefit return. You calculated these amounts on the following forms or other documents you file with your income tax and benefit return:

In addition, if you claimed union, professional, or similar dues on line 21200 of your income tax and benefit return and you paid the HST on these amounts, enter these amounts in column 1B and/or 1C of Chart 1, minus any amount you were reimbursed. Your receipt for these dues should show whether the HST was charged.

Do not enter any amount in the black areas of Chart 1, since these expenses are not eligible for the rebate.

Enter in column 2B and/or 2C of Chart 1 the portion of any expenses you included in the applicable box of column 1 of Chart 1 that is not eligible for the rebate. For each expense, subtract the amount in column 2 from the corresponding amount in column 1. Enter the results in column 3B and/or 3C of Chart 1, as applicable. Total the eligible expenses in column 3B and/or 3C and enter the results in the appropriate "Total eligible expenses" boxes of column 3 of Chart 1.

If you deducted CCA for a motor vehicle, a musical instrument, or an aircraft on which you paid the HST, enter the total amount of this CCA in column 1B and/or 1C of Chart 2. Subtract any non-eligible CCA in column 2B and/or 2C as applicable from your total CCA in the corresponding row of column 1. Enter the result in column 3B and/or 3C of Chart 2, as applicable.

Copy the "Total eligible expenses" amount from column 3B and/or 3C of Chart 1 to column 3B and/or 3C of line 5 (depending on the HST rates applicable to your situation) of Part B on page 2 of the form. Enter the amounts from column 3B and/or 3C of Chart 2 to column 3B and/or 3C of line 6 (depending on the HST rates that apply to your situation) of Part B on page 2 of the form. Add columns 3B and/or 3C of line 5 and line 6 of Part B, and enter the results on the corresponding columns of line 7. Add the totals from the applicable columns on line 7, and enter the result on line 8.

Multiply column 3B of line 7 by 13/113, and enter the result on line 9. Multiply column 3C of line 7 by 15/115, and enter the result on line 10. Total lines 9 and 10, and enter the result on line 11.

If situation 5 does not apply to you, copy the amount from line 11 to line 14. This is your total rebate claim. Enter this amount on line 45700 of your income tax and benefit return. Remember to fill out Part D.

Situation 4 – You deducted expenses on which both GST and HST apply on your income tax and benefit return

Before filling out Part B, fill out Chart 1 and Chart 2 (if applicable) of the form to determine the total expenses that are eligible for the GST/HST rebate. You calculated these amounts on the following forms or other documents that you file with your income tax and benefit return:

Separate the expenses on which you paid the GST from those expenses on which you paid the HST. Enter the expenses on which only the GST applies in column 1A of Chart 1, and the expenses on which the HST applies in column 1B and/or 1C (depending on the HST rates applicable to you) of Chart 1.

In addition, if you had any union, professional, or similar dues on which you paid the GST/HST and you claimed them on line 21200 of your return (minus any amount you were reimbursed), enter these amounts in column 1A, 1B, and/or 1C of Chart 1. Your receipt for these dues should show whether the GST/HST was charged.

Do not enter any amount in the black areas, since these expenses are not eligible for the rebate.

Enter in column 2A, 2B and/or 2C of Chart 1 the part of any expenses included in the applicable box of column 1 that is not eligible for the rebate. For each expense, subtract the amount in column 2 from the corresponding amount in column 1. Enter the result in column 3A, 3B, and/or 3C. Enter the total of each column 3A, 3B, and/or 3C in the appropriate "Total eligible expenses" boxes of column 3 of Chart 1.

If you deducted CCA for a motor vehicle, a musical instrument, or an aircraft on which you paid the GST/HST, enter the total amount of the CCA in column 1A, 1B, and/or 1C of Chart 2. Subtract any non-eligible CCA in column 2A, 2B, and/or 2C as applicable from your total CCA in the corresponding row of column 1. Enter the result in column 3A, 3B, and/or 3C of Chart 2 as applicable.

Copy the "Total eligible expenses" amount from column 3A of Chart 1 to line 1 in Part B on page 1 of the form, and the amount from column 3A of Chart 2 to line 2. Add line 1 and line 2 in Part B, and enter the result on line 3. Multiply line 3 by 5/105, and enter the result on line 4.

Copy the “Total eligible expenses” amount from column 3B and/or 3C of Chart 1 to column 3B and/or 3C of line 5 (depending on the HST rates applicable to your situation) in Part B. Copy the amount from column 3B and/or 3C of Chart 2 to column 3B and/or 3C of line 6 (depending on the HST rates applicable to your situation) in Part B. Add columns 3B and/or 3C of line 5 and line 6 in Part B and enter the result on the corresponding columns of line 7. Add the totals from the applicable columns on line 7 and enter the result on line 8.

Multiply column 3B of line 7 by 13/113, and enter the result on line 9. Multiply column 3C of line 7 by 15/115, and enter the result on line 10. Add lines 9 and 10 and enter the result on line 11.

If situation 5 does not apply to you, add lines 4 and 11, and enter the result on line 14. This is your total rebate claim. Enter this amount on line 45700 of your income tax and benefit return. Remember to fill out Part D.

Situation 5 – Property and services brought into a participating province

You may be eligible to claim a rebate of 1/101, 2/102, 8/108, or 10/110 for eligible expenses you deducted on your income tax and benefit return if you paid the provincial part of the HST separately. This excludes any expenses for which you paid the HST.

You may have paid all or part of the applicable provincial part of HST separately if you:

  • purchased goods in a non-participating province and brought them into a participating province
  • purchased goods in a participating province and brought them into another participating province where the rate of HST is higher
  • imported commercial goods from outside Canada into a participating province
  • had goods delivered or made available to you in a participating province, or sent by mail or courier to you at an address in a participating province from a non-registered non-resident of Canada

Generally, if you were not a GST/HST registrant, or you were a registrant who did not consume, use, or supply the goods at least 90% in the course of their commercial activities, and one of the situations above applies, you had to pay the provincial part of the HST. In that case, a non-registrant would be required to file Form GST489, Return for Self-Assessment of the Provincial Part of Harmonized Sales Tax (HST), while a registrant would be required to report the amount of tax payable on line 405 of their regular GST/HST return.

For a motor vehicle, you may have paid the provincial part of the HST separately if you:

  • paid the GST when you purchased the vehicle from a registrant in a non-participating province and brought the vehicle into a participating province
  • purchased the vehicle in a participating province and brought the vehicle into another participating province where the rate of HST is higher
  • purchased your vehicle from someone who was outside Canada and we collected the GST at the border

You had to pay the provincial part of the HST when you registered your vehicle at a provincial motor vehicle registry office in a participating province. For more information, see GST/HST and specified motor vehicles.


Note


Provincial governments impose and administer the provincial motor vehicle tax. They also determine the rate of this tax. The provincial motor vehicle tax is separate from the GST/HST. Since it is not a federal tax, it is not eligible for any GST/HST rebate.

Before filling out Part B, fill out Chart 3 on page 5 of the form to determine the total expenses eligible for the GST and HST rebate. Enter in column A, B, C, and/or D, of line 1 of Chart 3 (depending on the HST rates applicable to your situation) the total amounts of the expenses you deducted on your income tax and benefit return (excluding CCA and the non-eligible portion of the expenses, if applicable).

If you deducted CCA on your income tax and benefit return for a motor vehicle, a musical instrument, or an aircraft (on which you paid the provincial part of HST separately), enter the amounts of the CCA, minus the portion that is not eligible for the rebate, directly in column A, B, C, and/or D of line 2 of Chart 3 (depending on the HST rates applicable to your situation).

Add lines 1 and 2 and enter the result in column A, B, C, and/or D of line 3.

Add the amounts from columns A, B, C, and/or D of line 3 and enter the total on line 4. Copy the amount from line 4 to line 12 in Part B on page 2 of the form. Multiply the amount from line 3 of column A by 1/101, the amount from column B by 2/102, the amount from column C by 8/108, and the amount from column D by 10/110, and enter the results on lines 5, 6, 7, and 8 respectively. Finally, add the amounts from lines 5 to 8 and enter the result on line 9. Copy the amount from line 9 to line 13 in Part B.

Add any amounts you have on lines 4, 11, and 13 and enter the result on line 14. This is your total rebate claim. Enter this amount on line 45700 of your income tax and benefit return. Remember to fill out Part D.

Situation 6 – The only expenses you deducted are tradesperson's tools expenses and/or apprentice mechanic tools expenses

If the only expenses you claimed on line 22900 of your income tax and benefit return were for the cost of tools you bought as a tradesperson and/or an apprentice mechanic (see Chapter 7 of Guide T4044, Employment Expenses), and neither Situation 4 nor Situation 5 applies to you, do not fill out the charts on pages 4 and 5 of Form GST370.

If you paid the GST, enter on lines 1 and 3 of Part B the amount of the expense you claimed on line 22900 of your income tax and benefit return, including the GST minus any amount you were reimbursed. Multiply the amount on line 3 by 5/105, and enter the result on line 4.

If you paid the HST, enter in column 3B and/or 3C of lines 5 and 7 of Part B the amount of the expense, including the HST minus any amount you were reimbursed. Add the amounts from columns 3B and/or 3C of line 7, and enter the total on line 8. Multiply the amounts from columns 3B and/or 3C of line 7 by the corresponding tax fraction (13/113 and/or 15/115), and enter the results on lines 9 and 10 respectively. Finally, add the amounts from lines 9 and 10 and enter the result on line 11.


Note


Columns 3B and 3C represent the HST rates for the participating provinces applicable to your situation.

Add lines 4 and 11, and enter the result on line 14. The amount on line 14 is your total rebate claim. Enter this amount on line 45700 of your income tax and benefit return. Remember to fill out Part D.

Part C – Declaration by claimant's employer or partnership

You may be eligible to claim the GST/HST rebate for expenses for which you received an unreasonable allowance. If so, an authorized officer of your employer or partnership has to fill out Part C. An authorized officer includes an immediate supervisor, a controller, or an office manager.

Examples

Example 1 – Reasonable allowance

Luc is a member of a partnership that is a GST/HST registrant. Luc incurred eligible automobile leasing expenses of $5,500. The partnership paid him a reasonable motor vehicle allowance of $3,100 for the use of his automobile.

Since Luc received a reasonable allowance for his automobile, he cannot claim the GST/HST rebate for the leasing cost. In addition, he cannot claim the rebate for any other automobile expenses he incurred, including gasoline and repairs.

Example 2 – Unreasonable allowance

The employer pays Dany a monthly motor vehicle allowance based on a flat rate that is not related to the number of kilometres driven. It is a taxable benefit and has to be included in Dany’s income.

The employer will report this monthly flat-rate allowance in box 14, "Employment income" and in the "Other information" area under code 40 at the bottom of Dany's T4 slip. Since Dany will include this amount in his income, he might be eligible to claim the GST/HST rebate on those eligible employment expenses. He will have to fill out Part C and get the signature of his employer or authorized officer.

Comparing reasonable and unreasonable allowances
Situation Result Reason
You received a reasonable allowance.

You cannot claim the GST/HST rebate.

 It is not a taxable benefit and is not included in your income for income tax purposes. You are not considered to have paid the GST/HST.
You received an unreasonable allowance. You may be eligible to claim the GST/HST rebate. It is a taxable benefit and generally included in your income for income tax purposes. You are considered to have paid the GST/HST.

This rule also applies when your employer or partnership pays you an allowance relating to motor vehicles, musical instruments, or aircraft. You cannot claim the rebate based on the CCA you deducted for these properties if the employer or partnership pays you a reasonable allowance.

For more information, see GST/HST Memorandum 9.3 – Allowances.

Part D – Certification

Sign the certification area. If you don't, it may delay or invalidate your GST/HST rebate claim.

Example 1

Ian is an employee whose employer is a GST/HST registrant and has a December 31 year end. As a part of his employment, Ian has to personally pay his motor vehicle expenses. For 2023, Ian did not receive any allowance or reimbursement for these expenses. His expenses were incurred in many provinces across Canada.

For 2023, Ian's motor vehicle expenses are as follows:

Ian's motor vehicle expenses
Items Amount
Licence and registration fees $260
Fuel (Ontario at 13% HST) $1,000
Fuel (Prince Edward Island at 15% HST) $560
Fuel (Manitoba at 5% GST) $670
Fuel (Nova Scotia at 15% HST) $1,000
Total fuel $3,230
Insurance $750
Interest expenses $1,500
Maintenance and repairs (Prince Edward Island at 15% HST) $467
Maintenance and repairs (Manitoba at 5% GST) $533
Total maintenance and repairs $1,000
Car washes (Nova Scotia at 15% HST) $84
Capital cost allowance (CCA) (vehicle purchased in Ontario at 13% HST) $3,060
Total car expenses $9,884
Kilometres driven to earn his share of partnership income 25,000
Personal kilometres driven 5,000
Total kilometres driven 30,000

Ian is now ready to fill out his GST/HST rebate. To claim the rebate, he has to fill out Form GST370, Employee and Partner GST/HST Rebate Application.

He fills out Part A. Before he can fill out Part B, he has to fill out Chart 1 and Chart 2 of Form GST370 to calculate his GST/HST eligible expenses. Ian makes sure to review his expenses and CCA and places each of them, as applicable, on Chart 1 and Chart 2 under the GST/HST rate that applies for the expense or CCA.

Chart 1

For example, an expense of $1000 for fuel purchased in Ontario at 13% HST would be placed in the row of Chart 1 dedicated to fuel and under column 1B, reserved for expenses incurred at 13% HST.

He uses the fraction related to the personal-use portion of his motor vehicle (5,000/30,000) to calculate the non-eligible portion of each one of his expenses and places these amounts under columns 2A, 2B, and 2C.

$1000 × (5,000/30,000) = $167

Ian enters $167 in column 2B to represent the non-eligible portion of the fuel expense in Ontario and does the same calculation as above for each of the eligible expenses to determine the other amounts to enter in columns 2A and/or 2C.

He subtracts the amounts in column 2 from the amounts in column 1 to calculate the eligible portion of each expense and places the result in column 3.

$1000 - $167$ = $833

Ian does not enter any amounts in the black areas of the chart since these expenses are not subject to the GST/HST, and as a result, are not eligible for the rebate.

Ian adds up the amounts from each of columns 3A, 3B, and 3C and places each total on the bottom line of Chart 1, Total eligible expenses (other than CCA).

Chart 2

Ian places the amount for the CCA claimed on his vehicle in column 1B of Chart 2 and calculates the amount to enter in column 2B and 3B using the personal-use portion ratio once again, just like he did in Chart 1.

$3060 × (5,000/30,000) = $510

$3060 - $510 = $2,550

Ian is now ready to fill out Part B by using the amounts from Chart 1 (the totals of columns 3A, 3B, and/or 3C) and Chart 2 (column 3B).

Ian does not have to compete Part C of Form GST370 since he did not receive an allowance for using his motor vehicle.

Ian enters $494 on line 45700 of his 2023 income tax and benefit return because this is the employee and partner GST/HST rebate amount he calculated on line 14 of Part B. The amount represents the total of line 4 and line 11 from Part B. Ian also attaches Form GST370 to his income tax and benefit return and keeps a copy for his records.

Ian must still reduce the amount of his undepreciated capital cost for the beginning of 2024. He multiplies the eligible expense amount from column 3B of Chart 2 by 13/113 since he paid 13% HST when he purchased his vehicle in Ontario in 2023 and then subtracts the result from the amount he entered in line 45700 (above) of his 2023 income tax and benefit return.

$2,550 × (13/113) = $293

$494 - $293 = $201

Ian will include $201 on line 10400 of his 2024 income tax and benefit return. This amount is part of the rebate he will receive in 2024 that relates to eligible expenses other than CCA.

  • Example 2

    Sam is a commissioned salesperson who negotiates contracts for his employer in Ontario which has an HST rate of 13%. Under his contract of employment, he has to pay his own expenses and is normally required to work away from his employer's place of business. His employer is a GST/HST registrant. Sam received a taxable allowance for the use of his motor vehicle (purchased in December of 2022) that is included on his T4 slip for 2023. Since the allowance is taxable, he can claim a rebate on certain expenses related to that allowance. His travel for work is restricted to Ontario and all of his expenses are incurred within the province.

    To calculate his employment expenses, he fills out Form T777, Statement of Employment Expenses, as shown below. Because of space limitations, the entire form is not reproduced.

    Statement of Employment Expenses
    Expenses Line references
    		 Amounts Line
    Accounting and legal fees 8862 1
    Advertising and promotion 8520 2
    Allowable motor vehicle expenses
    (see chart for line 3 below)    		 9281 11,803.06 3
    Food, beverages, and entertainment expenses 1,559.68 x 50 % = 8523 779.84 4
    Lodging 9200 5
    Parking 8910 6
    Office supplies (postage, stationery, ink cartridges, etc.) 8810 178.25 7
    Other expenses (employment use of a cell phone, long distance calls for employment purposes, etc.) (specify): Cell phone 9270 623.13 8
    Tradesperson's tools expenses (maximum $1,000)&nbsp 1770 9
    Apprentice mechanic tools expenses
    		 9131 10
    Labour mobility deduction (see chart for line 11 on page 2) (maximum $4,000) 1771 11
    Musical instrument expenses 1776 12
    Capital cost allowance (CCA) for musical instruments
    (see « Part A » of this form)    		 1777 13
    Artists' employment expenses 9973 14
    Add lines 1 to 14 Subtotal 13,384.28 15
    Work-space-in-the-home expenses
    (see chart for line 16 on page 3)    		 9945 16
    Total expenses
    Line 15 plus line 16.(Enter this amount on line 22900 of your return)    		 9368 13,384.28 17
    Line 3 – Calculation of allowable motor vehicle expenses
    Description of the vehicle and expenses Amount Line
    Enter the make, model and year of motor vehicle used to earn employment income Dodge 2020 n/a
    Enter the number of kilometres you drove in the tax year to earn employment income 22,500 18
    Enter the total number of kilometres you drove in the tax year 30,000 19
    Line 18 divided by line 19 = 0.75 20
    Enter the motor vehicle expenses you paid for:
    Fuel (gasoline, propane, oil) and electricity    		 3,230.55 21
    Enter the motor vehicle expenses you paid for: Maintenance and repairs 467.67 22
    Enter the motor vehicle expenses you paid for: Insurance 1,200.00 23
    Enter the motor vehicle expenses you paid for: License and registration 260.00 24
    Enter the motor vehicle expenses you paid for: Capital cost allowance (see Parts A and B) 8,644.50 25
    Enter the motor vehicle expenses you paid for: Interest expense 1,850.19 26
    Enter the motor vehicle expenses you paid for: Leasing costs n/a 27
    Enter the motor vehicle expenses you paid for: Other expenses (please specify) 84.50 28
    Add lines 21 to 28 15,737.41 29
    Employment-use portion
    Line 20 multiplied by line 29    		 =11,803.06 30
    Enter the total of all rebates, motor vehicle allowances, and reimbursements for motor vehicle expenses you received that are not included in income. Do not include any repayments you used to calculate your leasing costs on line 27. 31
    Allowable motor vehicle expenses
    (line 30 minus line 31) Enter the amount on line 3 above     		11,803.06 32
    Part B – Class 10.1 (list each passenger vehicle on a separate line)

    Date acquired
    Cost of vehicle    		 1
    Class number    		 2
    UCC at the
    start of the year    		 3
    Cost of additions
    in the year    		 4
    Proceeds of disposition
    in the year    		 5
    Base amount for
    CCA    		 6
    CCA Rate %

    7
    Capital cost allowance
    for the year
    (col. 5 multiplied by col. 6, or a lower amount)

    TOTAL

    8
    UCC
    at the end of the year
    (col. 2 minus col. 7, or col. 3 minus col. 7)

    TOTAL
    2022-12-31 34,000.00 10.1 28,815.00 0 0 28,815.00 30% 8,644.50 20,170.50

    Sam is now ready to calculate his GST/HST rebate. To claim the rebate, he has to fill out Form GST370, Employee and Partner GST/HST Rebate Application. Sam fills out Part A. Before he can fill out Part B, he has to fill out Chart 1 of Form GST370 to calculate his HST eligible expenses. He also must fill out Chart 2 because he is claiming CCA on his motor vehicle. Using the information in Guide T4044, Employment Expenses, he calculates and reports the expenses not eligible for the rebate in column 2B of Chart 1. To calculate the personal-use portion of his motor vehicle expenses, Sam uses the fraction 7,500/30,000. This is the personal kilometres driven (30,000 – 22,500) over the total kilometres driven. He enters this non-eligible portion of CCA in column 2B of Chart 2. He fills out Chart 1 and Chart 2 on his Form GST370 as follows:

    Chart 1 – Eligible expenses (other than CCA) on which you paid GST/HST
    Type of expenses
    Expenses other than CCA    		 (1)
    Total expenses 13% HST    		 (2)
    Non-eligible portion of expenses 13% HST    		 (3)
    Eligible expenses (col. 1 minus col. 2) 13% HST
    Accounting and legal fees 0 0 0
    Advertising and promotion 0 0 0
    Food, beverages and entertainment 779.84 0 779.84
    Lodging 0 0 0
    Parking 0 0 0
    Supplies 178.25 0 178.25
    Other expenses (please specify) 623.13 0 623.13
    Tradesperson's tools expenses (for employees) 0 0 0
    Apprentice mechanic tools expenses (for employees) 0 0 0
    Labour mobility deduction (for employees) 0 0 0
    Musical instrument expenses other than CCA 0 0 0
    Artists' employment expenses 0 0 0
    Union, professional or similar dues 0 0 0
    Motor vehicle
    expenses:     Fuel    		 3,230.55

    807.64 1

    		 2,422.91
    Maintenance and repairs 467.67 116.92 2 350.75
    Insurance, licence, registration, and interest 0 0 0
    Leasing 0 0 0
    Other expenses (Car washes ) 84.50 21.13 3 63.37
    Work space in home 0 0 0
    Electricity, heat, water 0 0 0
    Maintenance 0 0 0
    Insurance and property taxes
    (not eligible for rebate)    		 0 0 0
    Other expenses (please specify) 0 0 0
    Chart 2 – GST/HST paid on expenses on which you claimed Capital Cost Allowance (CCA)
    Type of expenses (1)
    Total expenses 13% HST    		 (2)
    Non-eligible portion of expenses 13% HST    		 (3)
    Eligible expenses (col. 1 minus col. 2) 13% HST

    Capital Cost Allowance (CCA) on motor vehicles, musical instruments, and aircraft

    		 8,644.50 2,161.13 4 6,483.37

    Total of eligible expenses (other than CCA) in column 3 = 4,418.25.

    1. $3,230.55 × (7,500/30,000) = $807.64

    2. $467.67 × (7,500/30,000) = $116.92

    3. $84.50 × (7,500/30,000) = $21.13

    4. $8,644.50 × (7,500/30,000) = $2,161.13

    Sam did not enter any amounts in the black areas, since these expenses are not eligible for the rebate.

    Sam copies the amounts from the "Total eligible expenses" lines of column 3B of Chart 1 to column 3B of line 5 in Part B of Form GST370, and column 3B of Chart 2 to column 3B of line 6 in Part B, and fills it out as follows:

    GST rebate for eligible expenses on which you paid GST
    Eligible expenses, other than CCA, on which you paid the GST (total of column 3A of Chart 1 on page 4 of this form)
    $ Blank space for dollar value
    Line 1
    Eligible CCA on motor vehicles, musical instruments, and aircraft for which you paid the GST (from column 3A of Chart 2 on page 5 of this form)
    $ Blank space for dollar value
    Line 2
    Total expenses eligible for the GST rebate (line 1 plus line 2)
    Line 64850
    $ Blank space for dollar value
    Line 3
    Eligible GST - multiply line 3 by 5/105
    $ Blank space for dollar value
    Line 4
    HST rebate for eligible expenses on which you paid the HST
    3B - 13% HST
    3C - 15% HST
    Eligible expenses, other than CCA, on which you paid the HST (totals of each of columns 3B, and 3C, of Chart 1 on page 4 of this form)
    $4,418.25
    3C - 13% HST column Line 5
    Eligible CCA on motor vehicles, musical instruments, and aircraft for which you paid the HST (columns 3B, and 3C, of Chart 2 on page 5 of this form)
    $6,483.37
    3C - 13% HST column Line 6
    Total (add lines 5 and 6 in each of columns 3B, and 3C)
    $10,901.62
    3C - 13% HST column Line 7
    Total eligible expenses for the HST rebate (add the totals of column 3B, and 3C together from line 7)
    Line 64857
    $10,901.62Blank space for dollar value
    Line 8
    Multiply column 3B line 7 by 13/113
    $1,254.17
    Line 9
    Multiply column 3C line 7 by 15/115
    $ Blank space for dollar value
    Line 10
    Total (add lines 9, and 10). For more information to fill out this section, see GST/HST rebate for employees and partners or Guide T4044.
    $1,254.17
    Line 11
    Total expenses eligible for the HST rebate (from line 4 in Chart 3 on page 5)
    Line 64860
    Blank space for dollar value
    Line 12
    Rebate for property and services brought into a participating province Enter the result from line 9 in Chart 3 on page 5 of this form.
    $ Blank space for dollar value
    Line 13
    Employee and partner GST/HST rebate (add lines 4, 11 and 13). Enter the result on line 14, and enter that amount on line 45700 of your income tax and benefit return.
    $1,254.17
    Line 14

    Since Sam is claiming a rebate for his motor vehicle expenses for which he received a taxable allowance, an authorized officer of Sam's employer has to fill out and sign Part C.

    Sam enters $1,254.17 on line 45700 of his 2023 income tax and benefit return. He also attaches Form GST370 to his tax return.

    On his 2024 income tax and benefit return, Sam will include $508.29 ($4,418.25 x [13/113]) on line 10400. This amount is the part of the rebate he will receive in 2024 that relates to eligible expenses other than CCA. He will then reduce his UCC at the beginning of 2024 by $745.87 ($6,483.37 x [13/113]).

When to file and where to send your rebate application

After filling out Form GST370, attach a copy to your income tax and benefit return and enter the amount of your claim on line 45700 of your income tax and benefit return. Keep a copy of the completed form for your records.

You should file your rebate application with your income tax and benefit return for the year in which you deduct the corresponding expenses for income tax purposes.

If you do not file your rebate application with your income tax and benefit return, send it along with a letter to your tax centre.

You have up to four years from the end of the year to which the expenses relate to file an application for a GST/HST rebate. The CRA uses the calendar year in which you incur the expense to determine the four-year period. For example, if you incur an eligible expense and deduct it from your share of the partnership income in the 2023 tax year, you have until December 31, 2027, to file the GST/HST rebate application relating to that expense.


Note


If you are filing a rebate application for employment expenses that relate to a tax year prior to 2020, see Chapter 10 of the version of Guide T4044, Employment Expenses, that relates to that year for instructions on how to fill out Form GST370.

Rebate restrictions

You can only file one Form GST370, Employee and Partner GST/HST Rebate Application, for each calendar year. You cannot receive a rebate for an amount if:

  • the amount was previously rebated, credited, refunded, or remitted to you
  • you received or are entitled to receive a rebate (other than this type of rebate), refund, or remission of the amount
  • you received a credit note or you issued a debit note for an adjustment, a refund, or a credit that includes the amount
  • the deadline for filing the rebate has passed

Overpayment of the rebate

If you receive an overpayment of the GST/HST rebate, you have to repay the excess. You can find payment methods by going to Remit (pay) the tax you collected – How to remit (pay). The CRA charges interest on any balance you owe. To get the current interest rate, see Prescribed interest rates.

Documents to include with the rebate application and to keep for your records

You have to keep adequate books and records to support your claim for the GST/HST rebate. Generally, these are the same records you need to support your deductions for income tax purposes. They include:

  • receipts
  • invoices
  • credit card statements
  • cancelled cheques
  • written agreements

The records to support your claim must contain the information the CRA needs to determine the GST/HST you paid on each purchase you made (for example, they should show the amount of the GST/HST you paid, or show the amount you paid including the GST/HST).

You do not have to send these records with your GST/HST rebate application. However, you have to keep them for six years after the end of the year to which they relate, in case the CRA asks to see them.


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Date modified:
2023-01-24